Do Wall Street Analysts Like TransDigm Group Stock?
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Cleveland, Ohio-based TransDigm Group Incorporated (TDG) is a global designer, producer, and supplier of aircraft components. With a market cap of $80.4 billion, the company operates through Power & Control, Airframe, and Non-Aviation segments.
Shares of TransDigm have lagged behind the broader market over the past 52 weeks. TDG stock has soared 7.7% over this period, while the broader S&P 500 Index ($SPX) has gained 11.6%. However, shares of TDG are up 14.7% on a YTD basis, outpacing the SPX’s marginal return during the same time frame.
Zooming in further, TDG has underperformed the iShares U.S. Aerospace & Defense ETF’s (ITA) 29.3% rise over the past year and 20.6% surge in 2025.
TDG stock fell 5.5% following the release of its mixed Q2 2025 results on May 6. The company reported net sales of $2.2 billion, up 12% year-over-year; however, it fell short of consensus estimates. Driven by the company's application of value-driven operating strategy, lower one-time refinancing costs, and reduced non-cash stock and deferred compensation expenses, its net income for the quarter surged 18.6% year-over-year to $479 million. While its adjusted EPS came in at $9.11, reflecting a 14% increase from the prior-year quarter and surpassing analysts’ expectations of $8.85.
Looking ahead to fiscal 2025, the company reaffirmed its guidance, expecting net sales to be in the range of $8.75 billion to $8.95 billion and adjusted EPS between $35.51 and $37.43.
For the current fiscal year 2025, ending in September, analysts expect TDG's adjusted EPS to increase 9.6% year-over-year to $34.79. TransDigm has a solid earnings surprise history. TDG surpassed the Street's bottom-line estimates for each of the past four quarters.
Among the 20 analysts covering TDG stock, the consensus rating is a “Strong Buy.” That’s based on 15 “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration is slightly more bullish than two months ago, with 14 “Strong Buy” ratings on the stock.
On May 7, UBS (UBS) analyst Gavin Parsons maintained a “Buy” rating on TDG and raised the price target to $1,645, suggesting a 13.2% upside potential from current price levels.
As of writing, TransDigm Group’s mean price target of $1,521.75 implies a 4.7% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.